Retail Food Group has reported a $30.3 million increase in net profit after tax, which up 8.9 per cent on the previous year.
The Company’s record NPAT follows seven successive years of annual profit growth.
RFG CEO Tony Alford said: “Astute management of the Company’s robust and diversified business model, underpinned by a 31% increase in wholesale coffee revenues together with enhanced franchise system revenues, has delivered tangible results for shareholders”.
At a franchise network level, excluding the Michel’s Patisserie Queensland population which has been subject to unique but temporary supply side challenges, all systems generated positive average weekly sales (AWS) and average transaction value (ATV) growth albeit modest and in line with management expectations having regard to the prevailing retail climate.
“We remain focused on the organic growth of AWS, ATV and new outlets in each brand system and have redoubled our efforts on the development and execution of strong marketing programs, product innovation and brand reinvigoration strategies targeted at fortifying sales by the application of extended menu offers, enhanced customer engagement and the migration of outlets from shopping centre centric locations challenged by escalating rental demands and depressed consumer visitation cycles,” Alford said.
Financial year 2012 also witnessed the successful implementation of significant organisational restructure.
“The restructure formed part of an ongoing effectiveness and efficiency program instigated in late 2011 for the purposes of maximising franchise system performance, liberating further operating efficiencies and continuing the seamless integration of acquired business assets,” Alford said.
“Whilst these activities have resulted in certain one off costs which have impacted FY12 profit, the delivery of a brand system structure will ultimately deliver tangible efficiencies as well as positively impacting franchisee service delivery and corporate responsiveness.
“We remain focused on increasing productivity and efficiencies, implementing enhanced performance activation programs and liberation of further positive supply side outcomes amongst all facets of RFG operations.”